Essay about Money and Banking

Submitted By amine023
Words: 447
Pages: 2

There is a dispute between republican and obama, about how much the budget increased during his first two year in office. the White House released a fact sheet detailing his proposal to cut an additional $3 trillion from the deficit in the next 10 years. It noted that the plan includes Obama's American Jobs Act and would lead to a total of $4.4 trillion in deficit reduction. More than $300 billion would be squeezed out of Medicare and Medicaid, with about two-thirds of that resulting from reducing overpayments in Medicare. The plan does not include any cuts in benefits for Medicare recipients or entail raising the eligibility age for Medicare. Other savings would come from agriculture subsidies and federal employee benefit programs. The plan counts $1.1 trillion in savings from the drawdown of troops in Afghanistan and Iraq.

The spending increases were between 2008 and 2010, the non defense discretionary spending increases to $537 billion in 2010 from $434 billions in 2008, or 24%. also we have to add $259 billions into these programs and resulted in a record of 84% increase in the total domestic discretionary budget under the last congress.
Governments usually borrow by issuing securities, government bonds and bills, to raise money. Making sure that the interest rate remains at the very low level by keeping the demand the same. The question Is how the government is going to keep the interest low? And from where is going to get money?
Basically the government's promised that the demand is going to remain the same by buying bonds. And printing more money, which is going to affect the value of the dollar, the investment in US, and the strangulation.
In one hand John Keynes optimistically argues that the government should boost…